A business line of credit is one of the most flexible financing tools available to Canadian business owners. Unlike a traditional loan, you only pay interest on the amount you use. In 2026, Canadian businesses can access lines of credit from $10,000 to $500,000+ with competitive rates. Here's everything you need to know.
See your options and rates in 2 minutes. No credit impact.
A business line of credit works like a credit card but with better rates. You receive an approved credit limit and can draw funds as needed. You only pay interest on the amount drawn, and as you repay, the credit becomes available again.
Interest only accrues on drawn amounts, not your total limit.
Draw funds anytime online or through mobile banking.
Regular use and repayment improves your business credit profile.
Backed by collateral (equipment, property, inventory). Lower rates (6-12% APR), higher limits, requires assets.
No collateral required. Higher rates (10-20% APR), lower limits, based on creditworthiness.
Secured by accounts receivable or inventory. Good for businesses with significant assets but weaker credit.
Review both personal and business credit reports. Address any issues before applying.
Major banks, credit unions, and online lenders. Each has different requirements and rates.
Prepare 12 months of bank statements, financial statements, and registration documents.
Apply online or in-person. Most decisions within 2-5 business days.
See your options and get pre-qualified in 2 minutes. No credit impact.